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Because of COVID-19, Fly-High airlines said it will eliminate its dividend for the next three years. In year 4, it will begin repaying the dividend
Because of COVID-19, Fly-High airlines said it will eliminate its dividend for the next three years. In year 4, it will begin repaying the dividend at $1.00 and expand it by 3% thereafter. If the stock was trading at $8.00 before this announcement and investors use a required return of 15%, how much would the stock price decline? 24% 45% 35% 51% 32%
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